MannKind says it is likely to run out of cash in third quarter, CEO offers $150 million loan

By Jennifer Lanning Drey

Eugene, Ore., June 20 - MannKind Corp. is likely to run out of cash by the end of the third quarter, according to Alfred Mann, chief executive officer of the company.

Mann also said he has offered to personally fund the company with a commercial-style loan of $150 million.

"Our burn rate is increasing at a rather rapid rate and will reach over $50 million in the fourth quarter, Mann said in a presentation at the Wachovia Nantucket conference held Tuesday.

As of March 31, MannKind had cash and cash equivalents of $102.6 million, according to a company press release.

The company has four pivotal clinical trials underway for its lead product candidate, the Technosphere insulin system, which is an inhaled insulin delivery system being tested in patients with type 1 and type 2 diabetes.

The studies are expected to be finished in the second half of 2008, and the company plans to obtain Food and Drug Administration approval of Technosphere in late 2009 or early 2010, Mann said.

In addition, the company believes the Technosphere technology could be used in combination with other drugs.

"Our delivery platform is a very unique platform. It has a lot of potential for a variety of drugs and we're evaluating many of these now," Mann said.

MannKind is also in late-stage discussions regarding a strategic partnership for the Technosphere insulin system; however, Mann said he could not yet discuss the details of a potential partnership.

The company plans to begin phase 1 trials in its therapeutic cancer program in the next few months, he said.

Mannkind is a biopharmaceutical company with headquarters in Valencia, Calif.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.